Academy Press cuts dividend as profit falls 65%

Academy Press Plc will pay shareholders a dividend of 10 kobo per share, amounting to about N90.7 million, despite reporting a sharp 64.6 percent decline in annual profit due to weaker revenue and a steep fall in other operating income.

The Nigerian printing and packaging company proposed the final dividend for the financial year ended March 31, 2026, down from 15 kobo per share paid in the previous year, reflecting the weaker earnings recorded during the period. The proposed payout is subject to shareholder approval at the company’s forthcoming annual general meeting.

Academy Press reported a group profit after tax of N253.3 million, compared with N716.5 million a year earlier, while profit before tax declined to N253.4 million from N1.17 billion in 2025.

The weaker earnings came as revenue slipped by 3.8 percent to N4.41 billion from N4.59 billion, while gross profit fell 8.7 percent to N1.26 billion from N1.38 billion.

The biggest drag on profitability was a sharp decline in other operating income, which dropped by nearly 65 percent to N352 million from N997 million in the previous year. Administrative expenses also increased to N882.7 million from N810.2 million, while selling and distribution costs rose to N356.9 million from N268.7 million, further squeezing margins.

Finance costs, however, eased by 37 percent to N94 million from N149.3 million, providing some relief against the pressure from weaker operating earnings. The company also recorded an impairment loss on financial assets of N23.2 million, compared with an impairment reversal of N24.9 million recorded a year earlier.

Despite the earnings decline, Academy Press strengthened its equity position. Total shareholders’ equity rose by 17.7 percent to N920.8 million from N782.2 million, supported by retained earnings and the bonus share issue completed during the year.

The company also continued to strengthen its production assets. Property, plant, and equipment increased by 68.3 percent to N1.50 billion from N891 million, indicating continued investment in printing capacity and operational infrastructure.

On the balance sheet, Academy Press reduced its inventory holdings significantly. Inventories fell to N473.8 million from N1.20 billion, representing a decline of more than 60 percent, suggesting tighter inventory management or lower production levels during the year.

Cash and short-term deposits also declined by 34.9 percent to N612.4 million from N940.1 million, while total assets fell to N3.31 billion from N3.79 billion. Trade and other receivables declined modestly to N634.5 million from N679.3 million, reflecting improved collections.

On the liability side, total liabilities reduced by about 20.6 percent to N2.39 billion from N3.01 billion. Trade and other payables fell by almost 29 percent to N1.12 billion, while total interest-bearing borrowings declined slightly as the company continued to reduce debt obligations. Income tax payable also dropped to N677.8 million from N756.6 million.

The company’s earnings per share fell to 31.7 kobo from 79.6 kobo in the previous financial year, mirroring the sharp decline in profitability. Nevertheless, the board maintained a dividend payment, albeit at a reduced level, signalling confidence in the company’s financial position despite the more challenging operating environment.

Academy Press also announced a leadership transition during the year. Oluwakemi Ogunnubi assumed office as managing director and chief executive officer on April 1, 2026, succeeding Olugbenga Ladipo, who served in the role until the end of the financial year.

In addition, the company completed a one-for-five bonus share issue, increasing its issued shares by 151.2 million to 907.2 million ordinary shares, following shareholder approval at the October 2025 annual general meeting. The increase in issued capital raised the company’s share capital by 20 percent and formed part of efforts to reward shareholders despite the weaker earnings performance.

The company began the year with a share price of N7.30 but has since lost 12.3 percent off that price valuation, ranking it 117th on the NGX. The company currently has a market capitalisation of N5.81 billion, with its shares trading at N6.40 at the close of trading on Monday.